Board approves continued use of Online Utility Exchange for new‑account identity checks; vote 5–1

The Denton Public Utilities Board voted 5–1 on May 18 to approve continued use of Online Utility Exchange (Online Information Services) to provide soft credit checks and risk scoring used at new account setup to inform deposit requirements.

Staff explained the practice is intended to meet federal Red Flags Act obligations for identity verification and fraud detection. "It does a soft credit check and validates their personal information... It does not have an impact on the customer's credit score," a staff presenter said. The service returns a high/medium/low (red/yellow/green) risk indicator that the utility uses to determine whether to apply a 0‑, 1‑ or 2‑month deposit for new accounts.

A public comment read at the meeting alleged a customer faced a near $1,000 late fee, reconnection charges and an additional required deposit under ordinance 26‑4. Staff clarified that the Online Utility Exchange soft‑check is used only for new accounts (ordinance 26‑3) and that ordinance 26‑4 governs internal scoring and deposit adjustments for existing customers. The staff presenter said the city cannot address individual accounts in the public meeting but explained that the utility offers payment agreements, a prepaid deposit‑free option, and the ability to spread deposit payments over time to mitigate hardships.

During the discussion a committee member asked whether internal deposit adjustments and the Online Utility Exchange results can interact to create additional hardship; staff replied the green/yellow/red indicator is only a new‑account input from the vendor and internal alphabetic scoring governs later adjustments under 26‑4. The board moved approval; the transcript records a 5–1 vote in favor.

The board also directed staff to avoid discussing specific customer account details in public session and to provide public information on payment‑agreement options. The motion passed 5–1.